GCL Technology Holdings Ltd.’s stock rose after the Chinese company announced a share sale to help fund efforts to reduce overcapacity in the solar polysilicon sector.
The company’s shares gained as much as 5.6%. The HK$5.45 billion ($700 million) capital raise followed months of planning from GCL and other top polysilicon producers to set up a fund to retire production units of the key material used for solar panels and semiconductors after rapid expansion in recent years left the sector in a prolonged glut that drove down prices and destroyed company profits.